A first shipment of low-carbon ammonia has arrived in Japan from Saudi Arabia, testing the supply chain for a hydrogen joint venture.

The project is a joint venture between Fuji Oil Company, SABIC Agri-Nutrients, Aramco and Mitsui OSK Lines. SABIC and Aramco produced the ammonia, with OSK shipping it to Fuji Oil for use.

Ammonia will burn alongside fossil fuels in the co-firing process. The initial plan is to integrate 20% ammonia into coal burns in order to reduce carbon emissions from the process. Ammonia will supplement in the interim whilst the change to a hydrogen economy is facilitated.

As much of Japan’s coal industry approaches its phase-out, the country seeks alternative energy systems. The deal is part of an increasing effort to utilise ammonia, a more stable form of storing hydrogen, in the energy process. Japanese multinationals have already been exploring globally for renewable energy solutions. 

The project still has hurdles to overcome. Upgrades of storage facilities to house ammonia are still necessary. Firms are already striding towards this but they need more to fully facilitate the requisite demand.

Where does Japan go from here?

Earlier this year, Japan stated its aim to increase its supply of hydrogen to 12 million tonnes by 2040. Converting hydrogen to ammonia allows it to be stored in a more-energy dense and stable form. It does, however, require energy for the conversion. Low-carbon ammonia uses carbon capture technologies to prevent the release of CO2 emissions used in this conversion. Carbon Capture technologies similarly aid in the initial creation of blue hydrogen.

Abdulrahman Shamsaddin, CEO of SABIC, said: “Our aim is to capitalize on this important milestone to grow and expand our positive contribution toward carbon neutrality.”

Olivier Thorel, senior vice president of chemicals at Aramco, said of the deal: “This is another milestone that highlights the possibilities for low-carbon hydrogen and ammonia […] with the potential to play a role in a lower-carbon future.”

In March, Professor Emmanouil Kakaras told GlobalData analysts: “Co-utilisation of ammonia with coal assets should be replicated around the world, because this is the low hanging fruit that will pave the way for the quicker introduction of green hydrogen.”